Moody’s threatens to downgrade Germany if Greece leaves Euro

WASHINGTON — Moody’s warned Friday that a Greek pullout from the eurozone could lead to downgrades of the eurozone’s top-rated governments, including economic powerhouse Germany.

Moody’s also said that an EU rescue of Spain’s banking sector could force a cut to Spain’s sovereign rating due to the “increased risk to the country’s creditors.”

“Greece’s exit from the euro would lead to substantial losses for investors in Greek securities, both directly as a result of the redenomination and indirectly as a result of the severe macroeconomic dislocation that would likely follow,” said Moody’s.

“Should Greece leave the euro, posing a threat to the euro’s continued existence, Moody’s would review all euro area sovereign ratings, including those of the Aaa nations,” it said.